Not surprising to see markets recover after Friday's heavy selling. The S&P low of 1183.68 was a picture perfect 20-day MA test but Friday's close ranked as a breakdown (from the perspective of candlestick real-bodies - but not full intraday ranges), so the bounce is working against resistance, not support as before. The MACD switched to a 'sell' but it has been whipsawing the past few weeks so it's not a strong signal. ($SPX) via StockCharts.com The Dow actually broke channel support on April 7th and marked a successful backtest on April 14th. Monday made substantial inroads to Friday but the rate of ascent from February lows has slowed. It too closed with a MACD trigger 'sell'. ($INDU) via StockCharts.com Tech averages clinged to channel support with the breakout gaps closed (true breakout gaps never close). But the recovery off the lows may see some follow through up over the coming days given the successful defense of support. ($COMPQ) via S...

Perhaps the first significant sign of a top in the weekly charts was the across the board bearish shooting stars. For the S&P the potential reversal occurred below resistance and will need a weekly close below the low of the pattern to confirm (1,186). Volume ranked as confirmed distribution with some of the heaviest selling last seen in the latter part of 2009 (although that selling didn't halt the advance). ($SPX) via StockCharts.com The shooting star for the Nasdaq bisected the first of two reaction high resistance levels from 2008. The index is getting sharply squeezed by the aforementioned resistance and the rising support from March 2009 lows AAAA Nasdaq via StockCharts.com The weekly move for the Nasdaq 100 spanned the dual reaction highs of 2008 ($NDX) via StockCharts.com The Percentage of Nasdaq Stocks above the 50-day MA was pegged by declining resistance and has been struggling to keep momentum. ($NAA50R) via StockCharts.com Nasdaq Bullish Percents have b...

No surprise to see markets take a pause after yesterday's gains. The S&P posted a fairly standard doji on heavy volume. ($SPX) via StockCharts.com But the Nasdaq was able to push a little higher ($COMPQ) via StockCharts.com And the Nasdaq 100 too, although it finished the day at channel resistance ($NDX) via StockCharts.com The semiconductor index finished with a bearish shooting star - perhaps the only index to finish the day with something bearish to say: ($SOX) via StockCharts.com Breakout gaps are the logical downside target for the next period of weakness but bulls are very much in control. Follow Me on Twitter Build a Trading Strategy in Zignals; Read how and earn real money (once out of Beta) in this PDF. Dr. Declan Fallon, Senior Market Technician for Zignals.com , offers a range of stock trading strategies for global markets, also available through the latest rich internet application for finance, the Zignals MarketPortal or the Zignals Trading Str...

The past few days had the look of a tired rally but Intel and JP Morgan added a bit of pep and buyers returned. This piled on the misery for shorts who again were put on the defensive, but it was the activity of buyers which added to the spice of panic covering. For the S&P it was rising support which bulls were prepared to defend. Supporting technicals continued to improve even though the MACD remains flattish. ($SPX) via StockCharts.com The Nasdaq enjoyed the best gains thanks to Intel. There is a breakout gap to be defended with some of the strongest buying volume for the year. There is even room to run to channel resistance. ($COMPQ) via StockCharts.com For Bulls there was the added bonus of some of the biggest gains for the lead averages in the Russell 2000 ($RUT) via StockCharts.com With a sizable breakout gap in the semiconductor index (good for the economy) ($SOX) via StockCharts.com There are big gains for bulls to hang on to and at this stage of the rally it...

Bulls refuse to let go after weak Alcoa earnings had looked to set the tone. However, morning selling gave way to afternoon buying, enough to finish with slightly higher close on higher volume accumulation - the first real buying in four days. ($SPX) via StockCharts.com The Nasdaq had a more positive day given it was influenced less by Alcoa. Prices continue to hug rising support as the late March MACD 'sell' gave way to a new 'buy' trigger. Accumulation day chalked up too. ($COMPQ) via StockCharts.com Small Caps also inched higher as the rate of ascent for both 20-day MAs and 50-day MAs increased. ($RUT) via StockCharts.com The VXN volatility index is getting very close to the lows of 2005 and with the bullish wedge narrowing to an apex. Why 2005 lows didn't lead to an immediate market reversal it was the start of increased volatility period which eventually pushed the market over the edge. ($VXN) via StockCharts.com Can tomorrow make it five in a row...

Very little change other than a successful defense of Friday's highs. For the S&P there was a flattening of the MACD but other technicals were able to inch higher $SPX via StockCharts.com The Nasdaq had its third day of lower volume gains, but it wasn't enough to reverse the MACD trigger 'sell' $COMPQ via StockCharts.com The semiconductor index made a better fist of it, but the gap breakout closed with a bearish shooting star as the MACD rolls a top. $SOX via StockCharts.com What can tomorrow offer? Three days of ever lower volume gains suggests there will not be a fourth. Follow Me on Twitter Build a Trading Strategy in Zignals; Read how and earn real money (once out of Beta) in this PDF. Dr. Declan Fallon, Senior Market Technician for Zignals.com , offers a range of stock trading strategies for global markets, also available through the latest rich internet application for finance, the Zignals MarketPortal or the Zignals Trading Strategy Marke...

Market closed the week with yet another flourish; how much more can it offer new buyers? Anthony Caldaro of ObjectiveElliotWave has an S&P 60-min target of 1,222 as part of a fifth wave of five from February's low. On the daily chart there is still two targets for the S&P based on Fibonacci: 1,219 (close to the aforementioend 1,222) and 1,326 for wave 5 = wave 1. Yong Pan of Cobrasmarketview shows a more diverse mix of signals on the Intermediate time frame but a firm neutral on the short term. Option Calls at extremes Yong's automated model is trailing the stop on channel bands. Nice profit so far. Richard Lehman of TrendChannelMagic.com says it best in his opening paragraph (my epmphasis): 4/11 -- Dow 11,000 pulled things up like a magnet at the end of the day Friday and the trend simply continues. Many of the short term greens have changed slope, but continue upward. Whatever is holding this market up is not something you want to fight wi...